Danes bump Kriegers Flak to 2022
The Danish government and the country's main opposition Liberal Party late yesterday evening agreed an economic deal that will see the start-up of the 600MW Kriegers Flak offshore wind project postponed by two years until 2022.
The cross-party agreement includes more than 90 initiatives designed to boost growth and reduce costs for businesses.
As part of the deal the so-called PSO (Public Service Obligation) – a tariff paid by consumers on their electricity bills – will be reduced by DKr13.2bn ($2.4bn), a cut partly funded by the Kriegers Flak postponement.
The government will also reduce a planned 500MW of near-coast offshore wind projects to 400MW, while introducing a price cap on them.
State subsidies to onshore wind projects will be cut by approximately DKr100m in the years to 2020.
"Since reaching the Energy Deal in March 2012 the PSO costs have increased significantly more than expected at the time of signing the deal.
"This is a consequence of lower electricity prices and a larger-than-expected production of electricity from wind," the Danish Finance Ministry said.
The Danish Energy Agency has yet to begin tendering for the Kriegers Flak project. The country's network operator recently announced that plans to build an HVDC link to the wind farm have been scrapped on cost grounds.